The U.S. Treasury released its June spending report this week, highlighting an overall 9% year-over-year increase in total weapons accounts (procurement and research and development) by the U.S. military to $42.4 billion for the fiscal third quarter.

Total outlay spending by the U.S. Air Force in the quarter surged the most, up 14% year-over-year, said the analysts, led by Peter Arment.

There’s a lag of about 18 months between a Defense Department’s authorization funding to an outlay spending, “which should continue to favorably impact domestic spending and defense company results going forward,” the analysts said.

So far this year, weapons spending is up 6% to $127.1 billion, they said.

Boeing is scheduled to report second-quarter earnings on July 26, and the analysts said they expect the company to report a “positive momentum” for second-half deliveries and a continuation of “favorable” cash flow trends.

Analysts surveyed by FactSet expect Boeing to report adjusted earnings of $2.31 on sales of $23.1 billion. That would compare with an adjusted loss of 44 cents a share on sales of $24.8 billion in the second quarter of 2016.

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